What is the dependency between the Bananas Smoothies Frozen Yogurt Franchise Agreement and the Sublease?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
December 25, 2022, amounting to $329,934, $337,169 and $287,993, respectively.
As of December 29, 2024 and December 31, 2023, net royalties receivables from affiliate-owned franchises amounted to $15,251 and $14,987, respectively, and are included in royalties and advertising fees receivable, net in the accompanying balance sheets.
EXHIBIT J To Disclosure Document
Sublease Agreement
SUBLEASE
Sublessor ("Sublessor"):
| State of Formation: |
|---|
| Address: |
| Sublessee ("Sublessee"): |
| State of Formation: |
| Address: |
| Sublease Date ("Sublease Date"): |
| Lease ("Lease"): |
| Dated: |
| Tenant ("Tenant"): |
| Landlord ("Landlord"): |
| Premises ("Demised Premises"): as described in the Lease. |
| Guarantor: |
| This Sublease Agreement is made this day of, 20, by and between |
| Everything Yogurt Brands, LLC, a Delaware limited liability company, having an address at 25 |
| Washington Street, Morristown, New Jersey 07960 ("Sublessor") and, having an address |
| at, ("Sublessee"). |
| WHEREAS, Sublessor is the Tenant under the Lease, the terms and provisions of which are |
| incorporated as if fully set out herein; and |
| WHEREAS, Sublessee acknowledges and agrees that they are in receipt of a copy of the Lease |
| and |
| WHEREAS, Sublessor has agreed with the Sublessee to grant a Sublease of the Demised Premise |
| to Sublessee subject to the terms of this Sublease; and |
| WHEREAS, Everything Yogurt Brands, LLC ("Franchisor") and Sublessee (as "Franchisee" |
| have previously executed the current Franchise Agreement ("Franchise Agreement") under which the |
| Sublessee will operate a Restaurant as the term is defined in the Franchise Agreement subject to the term |
| of the Franchise Agreement and this Sublease; and Sublessee acknowledges that Landlord may unilaterally |
| modify the Lease for the Demised Premises in which case this Sublease Agreement may be amended |
| modify the Leade for the Definition Fromtier in which case this subjects regionitely the difficult |
NOW, THEREFORE, in consideration of the rents reserved under the Sublease, the mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:
unilaterally by Sublessor to comport to the modification made by Landlord.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the Sublease agreement is dependent on the Franchise Agreement. Specifically, the Sublease agreement between Everything Yogurt Brands, LLC, as the Sublessor, and the franchisee, as the Sublessee, is contingent upon the Franchise Agreement. The franchisee's operation of a Bananas Smoothies Frozen Yogurt restaurant at the subleased premises is subject to both the terms of the Franchise Agreement and the Sublease.
Furthermore, the document states that Everything Yogurt Brands, LLC (referred to as "Franchisor") and the Sublessee (referred to as "Franchisee") have previously executed the current Franchise Agreement under which the Sublessee will operate a Restaurant as the term is defined in the Franchise Agreement subject to the term of the Franchise Agreement and this Sublease. This clause emphasizes that the Franchise Agreement is a prerequisite for the Sublease, establishing a clear link between the two agreements.
In the event of the Franchise Agreement expiring or terminating, Everything Yogurt Brands, LLC, has the option to assume the Tenant's rights under the Lease. This is provided that Everything Yogurt Brands, LLC, assumes all of the Tenant's obligations and liabilities under the Lease. This option can be exercised by providing written notice to the Landlord within 30 days of the Franchise Agreement's expiration or termination. If Everything Yogurt Brands, LLC, assigns the Lease to another franchisee, it will be relieved of liability for any issues arising after the assignment date. This clause highlights the franchisor's control and potential involvement in the lease agreement, further illustrating the interconnectedness of the Franchise Agreement and the Sublease.